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HomeMy WebLinkAboutORDINANCE 0400-1978t CITY OF KENAI ORDINANCE NO. 400-78 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALABKA ESTABLISHING POLICIES AND PROCEDURE8 RELATIVF. TO THE LEASE OF CITY AIRPORT LANDS. WIIBREA8, lands guanted by quitclaim deed by the Federal government are, by tm'ms of that deed, to be managed or otherwise used solely to support AL,'po~ activities; and WHEREAS, clearly established policies are necessary for the effective management of such lends; and WHEREAS, there mu~t be a correlation betwe~,n the needs and responsibilities relative to the Airport and the needs and responsibilihe~ relative to the City es a whole, end WHEREAS, absolute maximization of return to the Airport may well preclude the proper, effective, e~onomic growth of the City and in turn be self- defeating, and WHEREAS, this ordinance is, therefore, designed to provide a balance, meeting the needs of both the Airport and the City as a whole. t NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI as follows: Section h Ordinance 258-75 is hereby repealed in its entirety and the following elmpters to be reenacted into the City-owned Lands title of the Kenai Code. Section 2: Chapter 5, Rules and Regulations Governing the Leasing of City-owned Airport Lands is hereby enacted in its entirety. 8cotton 3: Chapter 10, Provisions Requ~ed to be Included in all Airport Land Leases is hereby enacted in its entirety. PASSED BY THE COUNCIL OF THE CITY OF KENAl~tbis day of ~8~ C. Peter, CiW Clerk ,1978. FIRST READING: May 3, 1978 SECOND RRADING: May 17, 1978-Tabled THIRD RRADINO: June 7, 1978 F, FFECTIV~ DAT~: July 7, 1978 ,Chapter 5_:.. Rules and Regulations Governing The Leasinl~ of CRy-Owned Atrl~ort Lands 21.o5.01o 21.o5.02o 21.o5.03o 21.o5.04o 21 .o$,05o 21.05.060 21.05.070 21.o5.o80 Lands Available for Leasing Qu~lfleations of Applicants or Bidders Applications Rights Prior to Leasing Processing Procedure Service by Realty Fit-ms and Brokers Bidding Procedure Principles and Policy of Lease R~tes 2I.o1.olo 21.05.020 21.05.030 Lands Available for Leasing All tho Airport lands within the limits of the City to which the City holds title may be leased as hercinofler provided. qualifications of App,lleants or Bidders I. An applicant or bidder for a lease is qualified if the applicant or bidde~ a. Is an individual at least nineteen (19) years of age or over; or b. Is a group, association, or cox. poration which is authorized to conduct business under the Laws of Alaska; or O# Is acting as an agent for another and has qualified by filing with the City Clerk a proper Powc: of Attorney o~ a Letter of Author- i~ation, creating such agency. The agent shall represent only one principal to the exclusion of himself. The teton agent includes real estate brokers and agents. Applications AU applicetions for leaso of lands shall be filed with the City Clerk on forms provided by tho City available at the City Hall building. Applications shall be dated on receipt and payment of filing fee. After flung, a maximum of thirty (30) days shall be allowed to eom- plete the application. Filing fees ~u'e not refundable. . 21.05.030 21.05.040 g1.05.050 Applf~aflons (continued) 2. With every application the applicant shall submft a development plan, showinff and stating: a. The purpose of the proposed lease; b. The use, value and nature el' improvements to be constructed; c. The type of construction; d, The dates construction is ~stfmatcd ~v commence and be completed (maximum of two years); and, e. Whether intended use complies with the zoning ordinance and comprehensive pl~n of the City. Applications shall become a part of the lease. Rights Prior to Leasing The filing of an application for a lease shall ~ive the applicant no right to a lease o= to the use of the land applied for. Procossinl~ Procedure 1. Applications shall be forwarded to the Advisory Planning and Zon- ing Commission upon receipt. The Advisory Planning and Zoning Commission shall norn~lly consider applications for specific lands on a first-come, first-serve basis. Where there is difficulty in ob- taining a perfeot~_d 8pp!!eaflon, details as to development plans, eta., then the Advisory Planning and Zoning Commission may, after due notice to the first applicant, consider a second applisnt for the p~- tteula= lease. ~X.05,050 31.05.060 Processinl~ Procedure The City Council shall normally review s lease proposal only after approval of the Advisory Planning and Zoning Commission. However, appeals of Advisory ?lann~-ng and Zoning Commission disapproval may be made to the City Council. Completed, signed leases must be presented within thirty (30) days after approval by the Advisory Planning end Zoning Commission. Conceptual applications relative to unplatted land and/or unto- leased lands will also be considered on a first-come, first-serve basis. On approval of concept by the Advisory Planning end Zon- ing Commission and the City Council, the applicant is assured the x'lght of first refusal of the lease !ollowing the determination of a lease rate in accordance with established policy. Service by Realty Firms and Brokers 1. Realtors shall be entitled to a fee at the time the first payment is made under such lease. Said fee shall be limited to ton percent (10%) of the first year's lease rate, excluding charges for assessments, ox* five percent (5) of each year for the first five years at the Broker's option. However, realtors a pa~y to the lease shall not be entitled to a commission. Realtors shall treat any listing as they would any other client in re~ard to advertising, promotion, eto. Listings of platted lands available for lease shall be atmounced and posted publicly. Such announcements shall include block and lot number, pe~'cel number and any special limitations with strietions as may Be imposed by the Advisory Plannin~ and Zoning Commission and City Council. Such restrictions or limitations shell be specific and in addition to zoning restrictions. No lease proposed by an eligible realtor shall be denied if it meets such restrictions, applicable lease rates and zontng requirements in effect at time of application. AMENDED PAGE,. 21.05.060 ~1.05.070 21.05.080 Service by Realty Firms and Brokers (continued) Unplatted. released Airport lands and unrelessed lands shall not be listed with realtors. However, unless positive action has been taken by the Advisory Planning and Zoning Commis- sion and/or the City Council to set aside a certain tract as not available for lease at that particular time, a realtor may, on behalf of a chant, request a lease of such lands. Such a lease request shall be considered as described in the preceding ap- plication procedures, relating to unplatted, unreleased lands. Normal fees shall be due to the realtor on consummation of such a lease. Bidding Procedure As an exception to general poUey listed above, the City Council may designate a specific lot or lots to be made available only for bid. This provision shall apply only when there is no outstanding applica- tion pending on the lot or lots. As designated, sealed bids shall be received offering a one-time premium in addition to the established lease rate. Highest bid, however, shall be subject to all provisions of review and approval estabUshed for all other lease applications. Principles and Pol!.m/ of Lease Rates A fair return to the Airport System is mandated by the terms end conditions of the Quitclaim Deed and appropriate Deeds of Release, granting these lands to the Airport System by the Federal govern- ment. To insure a fait, return, all leases for a period in excess of five years shall include a redetermtnatton clause as of the fifth anniversary of each lease, normally set fcr the 1st of July of that fifth year. In pursuing ~ fair return, all lands for lease shall be appraised prior to lease and a~ain prior to redetermination. Therefore, lease rates shall be based on: ae Fair market value of the land, including an appropriate eon- sideration of facilities and services available (public water, public sewer, storm sewers, and other public utilities) as determined by a qualified independent appraiser, consider- ing rite best use of the specific land. ,Chapter 10.~:.. Provisions Required To Be Included In All Airport Land Leases 21.10.010 21.10.020 21.10.030 ~1.10,040 ~1.I0.050 21.10.060 11.10.070 11.10.080 11.10.090 11.10.100 21.10.110 Il. 10.120 21.10.130 21.10.140 11.10.150 21.I0.150 21.10.170 21. I0.180 21.10.100 21.10.200 21.10.210 21.10.220 21.10.230 21.10.240 21.10.250 21.10.i00 il. 10.270 ResponsibiUty to Properly Locate on Leased Premises Lease Utili~alton Payment of Rental AdJusiment of Rental Subleasing Assignments Modification Cancellation - Forfeittu'e l~otice or Demand Rights of Morgagee or Lienholder Enter and Re-entry Forfeiture of Rental Written Waiver Expiration of Leas~ Removal or Reversion of Improvements Upon Termination of Lease Rental of Improvements or Chattels Not Remo'~ed Sanitation Building and Zoning Codes Fire Protection Inspection Personal Use of Materials Rest~letions and Ileservations Waste and InJtu'y to Land W~ranty Approval of Other Authorities Title Restrictions Lfabiltty Insurance i 21.05.080 Prin~iples and Policy of Lease Rates 1. (continued) The actual rate of retur~ determined to be a fair return to the City shall be set annually in May by resolution of the City Council and shall apply to all leases thereafter quested. Realizing that investors, developers and other potential lessees need a reasonable assurance of stability in future lease rates, the redetermtnatton clause of all future leases shall include the following language: "At each five-year interval, the fair max'ket value shall be determined by qualified independent apprais- ers. The redetermined lease rate, annual rent, under this provision shell be ltmit~f, to a fifty percent ($0%) into'ease in the prdor lease rate, except where there a~ Juettflable increases due to provisions of additional sex'vices, such as public water, public sanitary sewe~, storm sewers, and major improvements in roads". 3. Reeo&mizing that the redetermination proeedux'e provided fox' above may be in conflict with the mandate of the quito!_~_tm deed and the several, deeds of release, the Clty Council herein knowledges its obli~atlen to provide the Airport Fund with those mums which the above redetermination policy may cause the Air- port i*und to lose, it is the intent of the Council to provide for suoh pos. aibl. e sllortfall by app. ropriati.n~ revenue relative to the assessen vatuatlon ofAfrpot~ propetmes. 4, The redetermtnation eleuse limitation outlined in Section 21.05.080, Item 2, shall not apply to any lease unless at the next preeedinf~ redetermination period the lease rate had actually been redcterrn- tned. AMENDED PAGE 21.10,010 21.10.020 21.10.030 21.10.040 21.10.050 Responsibility to Properly Locate on Leased Premises It shall be the responsiblity of the lessee to properly locate himself and his improvements on the leased land. It shall be unlawful to encroach on other lands of the City, or on lands owned or leased by another, and violation shall constitute a misdemeanor. Lease Utilization Leased lands shall be utilized for purposes within the scope of the application, the te~ms of the lease, and in conformity with the ordin- ances of the City and Borough, and in substantial conformity with the comprehensive plan. Utilization or development fin' other than the allowed uaas shall constitute a violation of the lease and subject the lease to cancellation at any time. Failure to substantially com- plete the development plan of the land, consistent with the proposed use and terms of the lease, shall constitute 8Tounds for eance!Iation. Payrnen,~ of Rent Rent shall be paid annually in advance. Said payments shall be pro rated to eonfcrm with the City of Kenai's fiscal year b0ginntng July 1 and ending June 30. If the equivalent monthly payment exceeds Two HunCh'~'d Dollars ($200), then the lessee shall have tho option of mak- in~ payments on a monthly or quarterly basis. Adjustment of Rental All leases shall contain the att'cement of the lessee to a renegotiation of the annual rental payment every fifth year. Subleasing No lessee may sublease lands or any part thereof leased to him here-- under' without prio~ Council approval. Subleases shall be in writing and be subject to the terms end conditions of the origin_al lease. No approval of the City shall b~ ~iven to the sublease of property until the lessee has substantially complied with the development plan. 21.10.060 21.10.070 21.10.080 ~nments No lessee may assign the land's leased to r~im without prior Council approval. The assignee sba!! be subject to all of the provisions of the lease. Any attempted assignment made in violation of this section shall be void. Modification No lease may be modified or~lly or in any manner other than by sn agreement in writing, signed by 'all parties in interest or their sueeeasors in interest. Any such modification shall require Council approval. Cancellation- Forfeiture Leases in good standing may be cancelled in whole or in part at any tinge upon mutual written agreement by lessee and the City Council. 2. Any lease used for unlawful purpose may be cancelled. If the lessee shah default in the performance or observance of any of the lease terms, covenants or stipulations thereto, or of the rogulatIons now or hereafter in foroe, and should said defauP, continue for thirty (30) calendar days after service of written notice by the City without remedy by lessee of the con~ diflons warranting defaul~, ~be City shall subject lessee to ap- propriate legal action, including, but not limited to, forfeiture of the lease. No improvements may be removed by lessee or other person during any time the lessee is in default. This pro- vision shall not be construed to prohibit the City from taking any appropriate legal action, including, but not limited to, forfeiture of the lease, immediately upon the occurrence of a default. q 21.I0.090 S1. lO. 100 10.110 ~1.10.19-0 Notice or Demand Any notice or demand, which under the terms of a lease or under any statute, must be given or made by the parties thereto, shall be in writing, and be given or made by registered or certified mail, ad- dressed to the other party at the address of record. However, either party may designate in writing such new or other address to which such notice or demand shall thereafter be so given; made or mailed. A notice given hereunder shall be deemed delivered when deposited in a U .S. general or branch post office, enclosed in a registered or certified mail prepaid wrapper or envelope, addressed as herein- above provided. Rights of Mortgagee or Licnholder In the event of cancellation or forfeiture of a lease for cause, the holder of a properly recorded mortgage, conditional assignment or collateral assignment will have the option to acquire the lease for the unexpired term thereof, subject to the terms and conditions as in the original lease. Entry md Re-entt7 In the event that the lease should be terminated as hereinbefore provided, or by summary proceedings or othemvise, or in the event that the demised lands or any part thereof should be aband- oned by the lessee during the said term, the lessor or its agents, servants, or representatives may, immediately or any time there- after, re-enter and resume possession of said lands or such part thereof, and remove all persons and property therefrom, either by summary proceedings or .by a suitable action or proceeding at law without being liable for any damages therefor. No re-entry by the lessor shall be deemed an acceptance of a surrender of the lease. Forfeittu, e of Rental In the event that the lease should be terminated because of any breach by the lessee, as herein provided, the annual rental pay- ment last made by the lessee shall be forfeited and retained by the lesso~ as partial or total liquidated damages for said breach. 21.10,130 21 .I0.140 21. I0.150 Written $¥aiver The receipt of rent by the lessor with knowledge of any breach of the lease by th~ lessee, or any default on the part of the lessee in observance or performance of any of the conditions or covenants of the lease, shall not be deemed to be a waiver of any provisions of the lease. No failure on the part of the lessor to enforce any cov- enant or provision therein contained, nor any waiver of any right thereunder by the lessor, unless in writing, shall discharge or invalidate such covenants or provisions, or affect the right of the lessor to enforce the same in the event of any subsequent breach or default. The receipt, by the lessor, or any rent or any other sum of money after the termfnaflon, in any manner, of the term therein demised, or after the giving by the lessor of any notice thereunder to effect such termination, shall not reinstate, con- tinue, ox- e~end ~l,.e resultant term therein demised, or destroy, ox, in any ~n~r impair the efficacy of any such notice or termin- ation as may have been given thereunder by the lessor to the lessee prior to the receipt of any such sum of money or other consideration unless so agreed to in writing and signed by the lessor. Expiration of Lease Unless the lease is renewed or sooner terminated as provided herein, the lessee shall peaceably and quietly leave, surrender and yield up unto the lessor all of the leased land on or before the last day of the term of lhe lease. Removal or Reversion of Improvements Upon Termination of Lease Improvements owned by a lessee shall within sixty (80) calendar days after the termination of the lease be removed by him; provid- ed, suoh removal will not cause injury or damage to the lands; and further provided, that the City Manager may extend the time for removing such improvements in eases where he~dship is proven. The retiring lessee may, with the consent of the Official, sell his improvements to the sueeeedin~ lessee. All periods of time granted to remove improvements ~e subJeot to said lessees paying to the City pro-rata lease rentals for said pea-led. ~1o 10,150 21.10.1~0 21.10.170 Removal or Reversion of Improvements Upon Termination of Lense. If any improvements and/or chattels, having appraised value in excess of $10,000 as determined by the Assessor, are not removc, d within the time allowed, such improvements and/or chattels shall upon due notice to the lessee be sold at public sale under the direction of the City Manager. The proceeds of the sale shall inure to the lessee preceding if he placed such improvements and/or chattels on the lands after deducting for the City all rents due and owing and expenses incurred in making such sale. In ease there are no other bidders at any such sale, The City Manager is authorized to bid in the name of the City on such im- provements and/or chattels. The bid money shall be taken from the fund to which said lands belong and the said fund shall re- ceive all monies or other value subsequently derived fi'om the sale or leasing of such improvements and/or chattels. City shall acquire all rights, both legal and equitable, that any other pur- chaser would acquire by reason of said purchase. If any improvements and/or chattels, having appraised value of $10,000 or loss as determined by the Assessor, are not removed within the time allowed, such improvements and/or chattels shall revert to and absolute title shall vest in tho City. Rental of Improvements or Chattels Not Removed Any improvements and/or chattels belonging to the lessee or placed on the lease dm'lng the lossee's tenure with or without his permis- sion and remaining upon the premises after the termination date of the lease shall entitle the lessor to charge a reaeonable rent therefor, Sanitation The lessee shall comply with all regulations or ordinances of the City which are promulgated for tho promotion of sanitation. Tho premises of the lease shall be kept in e neat, clean and sanitary con- dition, and every effort shall bo made to prevent the pollution of water. 21.10.180 21,10,190 21.10.200 :21.10.210 21.10.220 Buildin[~ and, Zo_r.,.fng Codes Leased lands shall be utiUzed in accordance with the building sad zoning ordinances and rules and regulation~ of said authority, Fell- ute to do so shall constitute a violation of the lease, Fire Protection The lessee will take all reasonable preeflutton to prevent and take all necessary action to suppress dest:..:.'.fvc or uncontrolled g~ass, brush or other fires on leased lands, and comply with all laws, regu~ lations and rules promulgated snd enforced by the City for fire pro~ teetion within the area wherein the leased premises m'e located. Inspection The leasco shall allow authorized representatives of the City to enter the leased land for inspection at any reasonable time. Personal Use of Materials All coal, oil, gas, and other minerals and all deposits of stone or g~avel valuable for extraction ~ utilization and all materials subject to Title II, Division I, Chapters 4, § and 6 of the Alaska Administrative Cod~ a~,e excepted from the operation of a surface lease. Speeifioslly, the leases of tho surfaco rights shall not sell el. remove for use else~ who~'e any timber, stone, gravel, peat moss, topsoil, or any other material valuable for building or eommerei~l purposes; provided, how- ove~', that material required for the dovelopment of the leasehold may be used if its use is first approved by the City Manager. ,Restrictions and Reservation-., The lease shall contain such restrictions and reservations as are neces- sm'y to protect tho public interest. 21.10.230 21.10.240 21.10.250 Waste end ,Injury to Lan.d, If any person shall commit waste or trespass or other injury upon City Innd, the person so offending, in addition to being civilly liable for any damages caused, shall be deemed guilty of a misdemeanor. .~an'ant~ The City does not warrant by its classification or leasing of land that the land is ideally suited for the use authorized under said elaasifieatton or lease, and no guaranty is given or implied that it shall be profitable to employ land to said use. Approval of Other Authorities The issuance by the City of leases does not relieve the grantee or lessee of responsibility of obtaining licenses o~' permits as may be ~-e~uired by duly authorized Borugh, State or Federal agencies. ?ttle Restrictions All lenses or sales or property shall be made subject to restrictions and resetwattens in the patent, deed or other instrument under whleh the City holds. Ii,ability Insurance Tho lessee shall be requt~ed to carry public liabiUty insurance in the minimum amounts of $250,000/$500,000/ $100,000. Chapter 15. Policy Governing Modifications of Existing Leases 21.15.010 21.15.020 General Redetermtnation Clause 21.15.010 21.15,020 General Leases shall only be modified and then only to that extent deemed to be necessary to protect the publicfs interest. Redetermination Clause The redetermination clause of existing leases may be adjusted on ap~ plieaflon to include the clause of Article I, Section 8-b, provided the minimura insurance coverage clause is also adjusted to reflect that of Article II, Section 26.